On Thursday lead banks Morgan Stanley, Bear Stearns and Deutsche Bank cut pricing on the term loan and synthetic letter of credit for MachGen. The financing consists of a $100 million revolver priced at LIBOR plus 2 1/4%, a $580 million first lien term loan priced at LIBOR plus 2% and a $60 million synthetic letter of credit priced at LIBOR plus 2%. The term loan and synthetic letter of credit were both previously priced at LIBOR plus 2 1/4% before the cut. A call to William Kriegle, ceo at K-Road Ventures which runs the power generation operation, was not returned by press time.
MachGen Pricing Gets Clipped